The Battle for Aussie Supermarket Supremacy

The Aussie supermarket landscape is the most hotly contested in the world. Nowhere else do two supermarket giants control the grocery market as tightly as Coles and Woolworths do. Their stranglehold on the market is so strong that it impacts their competitors, customers and the suppliers of the many products they sell. Both Woolies and Coles seem to be locked in a constant price war, each employing a range of tactics like price promotions and loyalty schemes to win customers and gain an edge. Critics claim the price-war tactics that Woolies and Coles throw at each other are anti-competitive, but the stark reality is that the strategies of the two supermarket giants are unlikely to change anytime soon.

What is changing, however, is the demographic of the Aussie grocery shopper and the tactics that the marketers of fast-moving consumer goods (FMCG’s) companies use to attract new customers. This article will explore some of the insights of the changing Aussie grocery shopper, along with some of the tactics the FMCG marketers out there are using to win the Battle of the Aisles.

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The Client Value Pyramid

What I call the ‘Client Value Pyramid’ is a useful way of categorising clients to efficiently focus your marketing and business growth effort. This framework has been taught as a staple of marketing strategy and can be used across a range of different marketing contexts. It is well worth having in the back of your mind when assessing which of your existing clients to approach to grow their contribution to your revenue.

The Price Promotion Trap

Price promotions are a common marketing strategy to generate a burst of increased sales of a product to penetrate the market. Price promotions involve temporarily reducing the price of a product to in an attempt to increase the sales volume over the standard sales rate during promotion period. Price promotions are great for many reasons, some of which include massive increases in sales volume, increased usage and interaction with the brand for the market and quickly selling off large amounts of stock. These benefits however come with a sacrifice, and it’s worth considering them before engaging in price promotion to gain incremental sales over the promotion period.

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Marketing Strategies that Get You Spending More

I’ve often heard marketing described as a dark art that’s all about ripping customers off. There’s some belief out there that marketers (particularly advertisers) are just manipulatively brainwashing you and getting you to buy their products. I find this opinion quite amusing both as a marketer and as an aware consumer. Although I understand how marketing communication can be scary to some with the extent of stuff companies can find out about us, I don’t agree with the generalisation that all marketers are evil. Instead, I believe that we consumers have the ability to think for ourselves, that we should be discerning about what advertising messages we act on and then take responsibility for our own purchasing behaviour. I trust that you are reading this blog as one of these consumers, with a realistic appreciation of business competition, who doesn’t blame your purchase ‘mistakes’ as the fault of the big bad corporation. With that said, here I’ll discuss some clever marketing that has been designed to increase your usage and get you spending more, beyond what may be entirely rational in hindsight.

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Selling in 3D

It’s all about ‘3D’ at the moment. 3D movies, TVs and even phones have moved to cash-in on the fad. It’s important to think ‘3D’ for your business’ marketing efforts too. The need to be market-oriented in your provision of a good or service to customers has been well-documented in marketing circles, and here I outline a simple way to categorise where you’re at with your selling efforts.

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